The European Union Provides Targeted Support to the Pressured Recycled Plastics Industry

A European Sector on the Brink in the Face of the Asian Offensive

The plastic recycling industry in Europe is experiencing an unprecedented crisis. According to Plastics Recyclers Europe, the sector recorded a greater loss of capacity in 2025 than any previous year, with notable plant closures in the Netherlands. Exorbitant energy costs, combined with cheap imports from Asia, are suffocating local players. China dominates 30.3% of circular plastic production, while the rest of Asia accounts for 24.6%, with Europe limited to 19%.

Industry leaders described their situation as « on the brink » at the beginning of October. Veolia, the leading French group in environmental services, lamented to AFP that « the responses provided so far are inadequate given the economic, industrial, and social challenges. » This Asian dominance extends to so-called circular plastics, derived from mechanical recycling, biomass, chemical recycling, or carbon capture. Meanwhile, packaging waste per European reached 190 kg in 2021 and could rise to 209 kg by 2030 without strengthened measures. Six countries, including France, Spain, and the Netherlands, have recently urged the EU to act against low-quality recycled plastic imports at discount prices.

Chemical Recycling and Administrative Streamlining at the Heart of the Measures

The European Commission is betting on chemical recycling to turn things around. This technique, which heats plastics to several hundred degrees, uses a lot of energy and is more polluting than mechanical recycling, but it « can play a role » for food packaging such as yogurt containers. Brussels will propose incorporating this method into the mandatory quotas for recycled plastic in bottles.

Another priority is to streamline the transition of waste to recyclable raw materials through uniform criteria across the EU. The Commission emphasizes that « this is an essential step to establish a single market for recycled plastics, simplify administrative procedures for recyclers, particularly small and medium-sized enterprises, and ensure a stable supply of recycled materials. » These adjustments target SMEs, often hampered by bureaucratic procedures. The measures are positioned as a first step toward broader circular economy legislation. The EU has already imposed anti-dumping duties on Chinese PET, used for bottles, to counteract prices that force European companies to sell at a loss.

Enhanced Import Controls and Monitoring Outlook

To combat unfair competition, the EU is tightening its import controls. In the first half of 2026, the Commission will propose legislative changes requiring increased documentation for recycled plastics, with separate customs codes for recycled and virgin versions to facilitate tracking. European audits will target recycling plants, including those outside the EU, and will support laboratories in verifying the authenticity of shipments.

An import monitoring unit will operate throughout 2026. The sector is suffering from « high energy costs, low and unpredictable prices of virgin plastic (linked to oil prices), and competition from cheap plastic imports (often virgin plastic falsely presented as recycled). » Veolia emphasizes, « It is imperative that the Commission fully understands the seriousness of the situation and adopts measures that truly address the challenges. » Brussels is considering additional trade measures if necessary. These initiatives respond to calls from six member states to curb the flow of low-quality plastics.